Unisys Announces 4Q and Full-Year 2025 Results

Rhea-AI Summary

Unisys (NYSE: UIS) reported 4Q25 revenue of $574.5M (+5.3% YoY; +2.7% constant currency) and FY25 revenue of $1.95B (−2.9% YoY). Non‑GAAP operating margin improved to 18.0% (4Q25) and full‑year cash and equivalents rose to $413.9M. FY25 included a $227.7M pension settlement loss and a discretionary $250M pension contribution that materially affected reported cash flows.

Positive

• 4Q25 revenue +5.3% YoY to $574.5M
• 4Q25 non‑GAAP operating margin 18.0%, up 640 bps YoY
• 4Q25 cash provided by operations $104.9M
• Cash and cash equivalents $413.9M at Dec 31, 2025
• Defined benefit pension deficit improved $301.7M YoY

Negative

• FY25 revenue down 2.9% YoY to $1.95B
• Net loss attributable to Unisys of $339.8M in FY25
• FY25 cash used for operations $(140.0)M including $250M pension contribution
• FY25 free cash flow $(217.6)M

News Market Reaction – UIS

+15.49%

22 alerts

+15.49% News Effect

+24.3% Peak in 15 min

+$20M Valuation Impact

$152M Market Cap

0.1x Rel. Volume

On the day this news was published, UIS gained 15.49%, reflecting a significant positive market reaction. Argus tracked a peak move of +24.3% during that session. Our momentum scanner triggered 22 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $20M to the company's valuation, bringing the market cap to $152M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

4Q25 revenue: $574.5M FY25 revenue: $1,950.1M 4Q25 non-GAAP operating margin: 18.0% +5 more

8 metrics

4Q25 revenue $574.5M Up 5.3% YoY; 2.7% in constant currency

FY25 revenue $1,950.1M Down 2.9% YoY; 3.3% decline in constant currency

4Q25 non-GAAP operating margin 18.0% Up 640 bps YoY; exceeded revised guidance

FY25 non-GAAP operating margin 9.1% Up 30 bps YoY for the full year

Cash & cash equivalents $413.9M Balance at Dec 31, 2025 vs $376.5M in 2024

Pension funding deficit $448.5M Deficit at Dec 31, 2025; improved by $301.7M YoY

FY25 pre-pension FCF $127.7M Pre-pension and postretirement free cash flow vs $82.4M in 2024

2026 revenue growth guide (6.5)% to (4.5)% Full-year 2026 constant-currency revenue growth guidance

Market Reality Check

Price: $2.46 Vol: Volume 1,103,176 vs 20-da...

normal vol

$2.46 Last Close

Volume Volume 1,103,176 vs 20-day average 896,134 (relative volume 1.23) ahead of results. normal

Technical Shares at $2.13, trading below 200-day MA of $3.65 and 64.85% under the 52-week high.

Peers on Argus

UIS fell 4.91% with elevated volume, while momentum peer TSSI was down ~2.0%. Ot...

1 Down

UIS fell 4.91% with elevated volume, while momentum peer TSSI was down ~2.0%. Other services/IT peers like III, TTEC, CTM, CSPI and TDTH also showed declines (e.g., TTEC -7.96%, III -5.52%), but the scanner flagged only one peer, indicating a more stock-specific setup than a broad sector rotation.

Historical Context

5 past events · Latest: Feb 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 23	Service expansion	Positive	-4.9%	Expanded Device Subscription Service with Dell for edge and IoT deployments.
Feb 18	Conference appearance	Positive	+1.9%	Cybersecurity leader speaking on AI-driven risks at 2026 Cybersecurity Summit.
Feb 12	Employer award	Positive	-3.5%	Named to Forbes America’s Best Midsize Employers 2026 list.
Feb 05	Earnings date notice	Neutral	-5.8%	Announced dates for 4Q25 and full-year 2025 results and conference call.
Feb 04	AI recognition	Positive	-5.5%	Recognized as a Leader in ISG’s 2025 Advanced Analytics and AI Services report.

Pattern Detected

Recent history shows several positive or branding-related announcements followed by negative price reactions, suggesting a pattern of selling into good news.

Recent Company History

Over the last month, Unisys issued multiple announcements, from AI and analytics recognition to employer accolades and service expansions. News such as the Device Subscription Service enhancement with Dell and ISG’s 2025 AI services recognition were fundamentally positive, yet the stock moved down 3–6% after several of these events. Even neutral items like conference schedules and call-date notices coincided with weakness, indicating investors had been cautious heading into the current 4Q25/FY25 earnings release.

Market Pulse Summary

The stock surged +15.5% in the session following this news. A strong positive reaction aligns with U...

Analysis

The stock surged +15.5% in the session following this news. A strong positive reaction aligns with Unisys’ notable 4Q25 margin expansion and cash improvements, including non-GAAP operating margin of 18.0% and cash of $413.9M. However, investors previously sold into several positive news items, and FY25 revenue fell 2.9% with 2026 guidance implying further contraction. That historical pattern and the sizable pension deficit of $448.5M could make any outsized move vulnerable if sentiment shifts.

Key Terms

total contract value (tcv), backlog, book-to-bill, ebitda, +1 more

5 terms

total contract value (tcv) financial

"Total Contract Value (TCV) (3)"

Total contract value (TCV) is the full amount of money a customer is expected to pay over the life of a contract, combining one-time charges and all recurring fees or services promised. For investors, TCV shows the size and potential near-term revenue impact of deals—like seeing the sticker price of a multi-year service—while reminding them that actual cash received depends on billing schedules, renewals and customer cancellations.

backlog financial

"Backlog(2) was $3.16 billion for the fourth quarter of 2025"

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

book-to-bill financial

"(4) Book-to-bill – Represents total contract value booked divided by revenue"

The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.

ebitda financial

"EBITDA (7) | | $79.5 | | $90.3 | | ( $144.3 ) |"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

adjusted ebitda financial

"Adjusted EBITDA (7) | | $129.0 | | $91.4 | | $278.8 |"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

AI-generated analysis. Not financial advice.

Exceeds Upwardly Revised Profitability Guidance and Finishes Year with Solid Cash Balance and Strong Liquidity

Fourth Quarter 2025 (4Q25) Highlights:

• Revenue of $574.5 million, up 5.3% year over year (YoY) and 2.7% in constant currency⁽¹⁾
• Operating profit margin of 13.3%, up 440 bps YoY, non-GAAP operating profit⁽⁶⁾ margin of 18.0 %, up 640 bps YoY
• Cash provided by operations of $104.9 million compared to $76.6 million in 4Q24; pre-pension and postretirement free cash flow⁽¹⁰⁾ of $112.9 million compared to $61.8 million in 4Q24

Full Year 2025 Highlights:

• Revenue of $2.0 billion, down 2.9% YoY and 3.3% in constant currency
• Operating profit margin of 4.0%, down 80 bps YoY, non-GAAP operating profit margin of 9.1%, up 30 bps YoY
• Cash used for operations of $140.0 million (including a discretionary pension contribution of $250 million) compared to cash provided by operations of $135.1 million in 2024; pre-pension and postretirement free cash flow of $127.7 million compared to $82.4 million in 2024
• Cash and cash equivalents at December 31, 2025, were $413.9 million compared with $376.5 million at December 31, 2024
• Defined benefit pension plans funding deficit status of $448.5 million compared to funding deficit of $750.2 million in 2024, improved by $301.7 million

BLUE BELL, Pa., Feb. 24, 2026 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) reported financial results for the fourth quarter and full year 2025.

"Our 2025 results reflect our ongoing commitment to a consistent strategy that balances our investment in solution development with our financial objectives of advancing profitability, free cash flow, and removal of pension liabilities," said Michael Thomson, Unisys CEO and President. "We believe we are effectively leveraging technology in our delivery capabilities and building AI-enabled solution frameworks to increase the scale and pace of value realization for our clients. This allows Unisys to show up differently in the market, and we see increasing recognition for our capabilities across our clients, partners, and industry analysts as we work towards accelerating revenue growth."

Unisys Chief Financial Officer Deb McCann said, "We were pleased to deliver another year of solid profitability improvement, exceeding the high-end of our upwardly revised non-GAAP operating margin guidance. Our License & Support ecosystem has continued to outperform our financial expectations, with consumption continuing to benefit from client adoption of AI. We ended the year with a strong liquidity position driven by increasing cash balances, an undrawn credit facility and no major near-term debt maturities."

Financial Highlights

Please refer to the accompanying financial tables for a reconciliation of the GAAP to non-GAAP measures presented except for financial guidance since such a reconciliation is not practicable without unreasonable effort.

(In millions, except numbers presented as percentages)		4Q25		4Q24		FY25		FY24
Revenue		$574.5		$545.4		$1,950.1		$2,008.4
YoY revenue change		5.3 %				(2.9) %
YoY revenue change in constant currency		2.7 %				(3.3) %
Excluding License and Support (Ex-L&S)(13) revenue		$388.1		$393.7		$1,522.0		$1,576.9
YoY revenue change		(1.4) %				(3.5) %
YoY revenue change in constant currency		(3.9) %				(3.9) %
License and Support(12) revenue		$186.4		$151.7		$428.1		$431.5
YoY revenue change		22.9 %				(0.8) %
YoY revenue change in constant currency		19.8 %				(1.2) %
Gross profit		$194.6		$175.0		$549.3		$585.9
Gross profit percent		33.9 %		32.1 %		28.2 %		29.2 %
Ex-L&S gross profit		$51.3		$61.9		$255.4		$277.6
Ex-L&S gross profit percent		13.2 %		15.7 %		16.8 %		17.6 %
Operating profit		$76.6		$48.6		$78.5		$97.4
Operating profit percent		13.3 %		8.9 %		4.0 %		4.8 %
Non-GAAP operating profit		$103.4		$63.3		$176.9		$176.4
Non-GAAP operating profit percent		18.0 %		11.6 %		9.1 %		8.8 %
Net income (loss) attributable to Unisys Corporation		$18.7		$30.0		($339.8)		($193.4)
Non-GAAP net income attributable to Unisys Corporation(8)		$63.4		$26.6		$68.3		$44.0
EBITDA(7)		$79.5		$90.3		($144.3)		$39.8
Adjusted EBITDA(7)		$129.0		$91.4		$278.8		$292.1
Adjusted EBITDA as a percentage of revenue		22.5 %		16.8 %		14.3 %		14.5 %

Fourth Quarter 2025 Results

Revenue increased 5.3% YoY, a 2.7% increase in constant currency, primarily driven by the timing of software license renewals. Ex-L&S revenue declined 1.4% YoY, a 3.9% decrease in constant currency, primarily driven by lower volume with clients in the Digital Workplace Solutions (DWS) and Cloud, Applications & Infrastructure Solutions (CA&I) segments.

Gross profit margin increased 180 bps YoY, primarily driven by the timing of software license renewals. Ex-L&S gross profit margin decreased 250 bps YoY, primarily due to 110 bps in higher cost reduction charges and an additional 70 bps from costs associated with a mutually agreed-upon client contract termination.

Full Year 2025

Revenue decreased 2.9% YoY, a 3.3% decrease in constant currency, primarily driven by lower volume with clients in the DWS and CA&I segments. Gross profit margin decreased 100 bps YoY, primarily driven by a higher proportion of hardware revenue within the Enterprise Computing Solutions (ECS) segment.

Ex-L&S revenue decreased 3.5%, a 3.9% decrease in constant currency, and Ex-L&S gross profit margin decreased 80 bps YoY. These declines were primarily driven by lower volume with clients in the DWS and CA&I segments.

Operating profit included non-cash goodwill impairment charges of $55.0 million and $39.1 million, in 2025 and 2024, respectively.

In 2025, net loss attributable to Unisys Corporation included a non-cash pension settlement loss of $227.7 million net of tax as a result of a group annuity purchase contract to transfer approximately $320 million of projected U.S. defined benefit pension liabilities to a third-party insurer, funded with plan assets. 

Financial Highlights by Segment

(In millions, except numbers presented as percentages)		4Q25		4Q24		FY25		FY24
Digital Workplace Solutions (DWS):
Revenue		$126.4		$128.2		$508.4		$523.5
YoY revenue change		(1.4) %				(2.9) %
YoY revenue change in constant currency		(3.7) %				(3.1) %
Gross profit		$13.3		$20.4		$73.9		$82.1
Gross profit percent		10.5 %		15.9 %		14.5 %		15.7 %
Cloud, Applications & Infrastructure Solutions (CA&I):
Revenue		$190.6		$192.7		$732.8		$764.4
YoY revenue change		(1.1) %				(4.1) %
YoY revenue change in constant currency		(4.1) %				(4.8) %
Gross profit		$39.4		$35.9		$147.8		$149.5
Gross profit percent		20.7 %		18.6 %		20.2 %		19.6 %
Enterprise Computing Solutions (ECS):
Revenue		$236.8		$203.5		$628.9		$627.5
YoY revenue change		16.4 %				0.2 %
YoY revenue change in constant currency		14.0 %				0.4 %
Gross profit		$156.0		$128.7		$349.2		$364.1
Gross profit percent		65.9 %		63.2 %		55.5 %		58.0 %

Fourth Quarter 2025 Segment Results

DWS revenue declined 1.4% YoY, a 3.7% decline in constant currency. DWS gross profit margin was 10.5%, a decrease of 540 bps YoY. These declines were primarily driven by lower volume with clients. Additionally, the DWS gross profit margin was negatively impacted by 200 bps associated with costs related to a mutually agreed-upon client contract termination.

CA&I revenue declined 1.1% YoY, a 4.1% decline in constant currency, primarily driven by lower volume with clients. CA&I gross profit margin was 20.7%, an increase of 210 bps YoY, primarily driven by labor cost savings initiatives.

ECS revenue increased 16.4% YoY, a 14.0% increase in constant currency. ECS gross profit margin was 65.9%, an increase of 270 bps YoY. These increases were primarily driven by the timing of software license renewals.

Full Year 2025

DWS revenue decreased 2.9%YoY, a 3.1% decrease in constant currency. DWS gross profit margin was 14.5%, a decrease of 120 bps YoY. These declines were primarily driven by lower volume with clients.

CA&I revenue decreased 4.1% YoY, a 4.8% decrease in constant currency, primarily driven by lower volume with clients in the public sector. CA&I gross profit margin was 20.2%, an increase of 60 bps YoY, primarily driven by labor cost savings initiatives.

ECS revenue remained relatively flat YoY and in constant currency. ECS gross profit margin was 55.5%, a decrease of 250 bps YoY, primarily driven by a higher proportion of hardware revenue, which has a lower gross margin profile relative to license renewals.

Balance Sheet and Cash Flow

(In millions)		FY25		FY24
Cash and cash equivalents		$413.9		$376.5

Cash and cash equivalents increased $37.4 million YoY.

At December 31, 2025, the defined benefit pension plans had a funding deficit of $448.5 million, a decrease of $301.7 million YoY. This reduction is primarily due to $343.7 million in cash contributions, including a $250 million discretionary contribution to the company's U.S. defined benefit pension plans, which was funded with approximately $200 million from the net proceeds of the 10.625% Senior Secured Notes due 2031 and $50 million from cash on hand.

(In millions)		4Q25		4Q24		FY25		FY24
Cash provided by (used for) operations		$104.9		$76.6		($140.0)		$135.1
Free cash flow(9)		$85.8		$55.7		($217.6)		$55.3
Pre-pension and postretirement free cash flow		$112.9		$61.8		$127.7		$82.4
Adjusted free cash flow(11)		$115.9		$67.0		$125.1		$104.6

Fourth quarter 2025 free cash flow increased by $30.1 million YoY, primarily driven by lower net interest payments and increased license renewals collections.

Full-year 2025 free cash flow declined by $272.9 million YoY, primarily resulting from cash contributions, including the discretionary pension contribution discussed above, partially offset by the favorable settlement of a legal matter and changes in working capital.

Full-year 2025 pre-pension and postretirement free cash flow increased by $45.3 million YoY, primarily due to the favorable settlement of a legal matter and changes in working capital.

Other Metrics

(In millions, except numbers presented as percentages)		4Q25		4Q24	YoY Change		QoQ Change*
Total Contract Value (TCV)(3)
New Business(5)		$            136		$            218	(38) %		10 %
Ex-L&S Renewals		781		312	150 %		240 %
L&S Renewals		232		222	5 %		280 %
Total company		$        1,149		$            752	53 %		177 %
		FY25		FY24
TCV
New Business(i)		$            491		$            791	(38) %
Ex-L&S Renewals		1,353		633	114 %
L&S Renewals		363		522	(30) %
Total company		$        2,207		$        1,946	13 %

*

QoQ - quarter over quarter

(i)

For the full year 2025, New Business TCV includes a mutually agreed-upon client termination adjustment of $228 million that was previously recorded in the first quarter of 2025. Accordingly, adjusted prior period amounts for New Business TCV are $109 million for the first quarter of 2025, $231 million for the second quarter year-to-date 2025, and $355 million for the third quarter year-to-date 2025.

In the fourth quarter and full year of 2025, the increase in TCV was primarily driven by a higher concentration of Ex-L&S renewals, partially offset by a decrease in New Business. The decrease in New Business reflects elongated sales cycles with prospective clients.

Backlog⁽²⁾ was $3.16 billion for the fourth quarter of 2025 compared to $2.84 billion for the fourth quarter of 2024. The increase was primarily due to Ex-L&S renewal signings.

2026 Financial Guidance

The company has issued full-year 2026 revenue growth and profitability guidance:

	Guidance
Revenue growth in constant currency	(6.5)% to (4.5)%
Non-GAAP operating profit margin	9.0% to 11.0%

Constant currency revenue guidance translates to reported revenue growth of (3.8)% to (1.8)% based on recent exchange rates as February 1, 2026, and assumes L&S revenue of approximately $415 million and Ex- L&S constant currency revenue growth of (7.0)% to (4.5)%.

2026 Annual Stockholder Meeting

Unisys' 2026 Annual Meeting of Stockholders will be held virtually on April 30, 2026, at 8 a.m. Eastern Time.

Conference Call

Unisys will hold a conference call with the financial community on Wednesday, February 25 at 8 a.m. Eastern Time to discuss the results of the fourth quarter and full-year 2025 and financial guidance for 2026.

The live, listen-only webcast, as well as the accompanying presentation materials, can be accessed on the Unisys Investor Website at www.unisys.com/investor. In addition, domestic callers can dial 1-844-695-5518 and international callers can dial 1-412-902-6749 and provide the following conference passcode: Unisys Corporation Call.

A webcast replay will be available on the Unisys Investor Website shortly following the conference call. A replay will also be available by dialing 1-855-669-9658 for domestic callers or 1-412-317-0088 for international callers and entering access code 3069514 from two hours after the end of the call until March 11, 2026.

⁽¹⁾ Constant currency – A significant amount of the company's revenue is derived from international operations. As a result, the company's revenue has been and will continue to be affected by changes in the U.S. dollar against major international currencies. The company refers to revenue growth rates in constant currency or on a constant currency basis so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates to facilitate comparisons of the company's business performance from one period to another. Constant currency is calculated by retranslating current and prior-period revenue at a consistent exchange rate rather than the actual exchange rates in effect during the respective periods.

⁽²⁾ Backlog – Represents the estimated amount of future revenue to be recognized under contracted work, which has not yet been delivered or performed. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but backlog can be a useful metric and indicator of the company's estimate of contracted revenue to be realized in the future, subject to certain inherent limitations. The timing of conversion of backlog to revenue may be impacted by, among other factors, the timing of execution, the extension, nullification or early termination of existing contracts with or without penalty, adjustments to estimates in pricing or volumes for previously included contracts, seasonality and foreign currency exchange rates. Investors are cautioned that backlog should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP.

⁽³⁾ Total Contract Value (TCV) – Represents the initial estimated revenue related to contracts signed in the period without regard for early termination or revenue recognition rules. Changes to contracts and scope are treated as TCV only to the extent of the incremental new value. New Business TCV represents TCV attributable to expansion and new scope for existing clients and new logo contracts. L&S TCV is driven by software license renewals, and as such, changes in timing or terms of renewals can lead to fluctuations from period to period. The company believes that actual revenue reflects the most relevant measure necessary to understand the company's results of operations, but TCV can be a useful leading indicator of the company's ability to generate future revenue over time, subject to certain inherent limitations. Measuring TCV involves the use of estimates and judgments and the extent and timing of conversion of TCV to revenue may be impacted by, among other factors, the types of services and solutions sold, contract duration, the pace of client spending, actual volumes of services delivered as compared to the volumes anticipated at the time of contract signing, and contract modifications, including, without limitation, contract nullification and termination, over the lifetime of a contract. Investors are cautioned that TCV should not be relied upon as a substitute for, or considered in isolation from, measures in accordance with GAAP.

⁽⁴⁾ Book-to-bill – Represents total contract value booked divided by revenue in a given period.

⁽⁵⁾ New Business – Represents expansion and new scope for existing clients and new logo contracts.

⁽⁶⁾ Non-GAAP operating profit – This measure excludes pretax pension and postretirement expense, pretax goodwill impairment charge and pretax charges or gains associated with certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings, and cost-reduction activities and other expenses.

⁽⁷⁾ EBITDA & adjusted EBITDA – Earnings before interest, taxes, depreciation and amortization (EBITDA) is calculated by starting with net income (loss) attributable to Unisys Corporation common shareholders and adding or subtracting the following items: net income (loss) attributable to noncontrolling interests, interest expense (net of interest income), provision for (benefit from) income taxes, depreciation and amortization. Adjusted EBITDA further excludes pension and postretirement expense; goodwill impairment charge, foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; cost-reduction activities and other expenses; non-cash share-based expense; and other (income) expense adjustments.

⁽⁸⁾ Non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share – These measures exclude pension and postretirement expense and charges or (credits) in connection with goodwill impairment; foreign exchange (gains) losses, debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses. The tax amounts related to these items for the calculation of non-GAAP diluted earnings (loss) per share include the current and deferred tax expense and benefits recognized under GAAP for these items.

⁽⁹⁾ Free cash flow – Represents cash flow from operations less capital expenditures.

⁽¹⁰⁾ Pre-pension and postretirement free cash flow – Represents free cash flow before pension and postretirement contributions.

⁽¹¹⁾ Adjusted free cash flow – Represents free cash flow less cash used for pension and postretirement funding; debt extinguishment, certain legal matters related to settlements, professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other payments.

⁽¹²⁾ License and Support (L&S) – Represents software license and related support services, primarily ClearPath Forward®, within the company's ECS segment.

⁽¹³⁾ Excluding License and Support (Ex-L&S) – These measures exclude revenue, gross profit and gross profit margin in connection with software license and support services within the company's ECS segment. The company provides these measures to allow investors to isolate the impact of software license renewals, which tend to be significant and impactful based on timing, and related support services in order to evaluate the company's business outside of these areas.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Unisys cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond Unisys' ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and that TCV is based, in part, on the assumption that each of those contracts will continue for their full contracted term. Words such as "anticipates," "estimates," "expects," "projects," "may," "will," "intends," "plans," "believes," "should" and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management's current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect upon Unisys. There can be no assurance that future developments will be in accordance with management's expectations, assumptions and beliefs or that the effect of future developments on Unisys will be those anticipated by management. Forward-looking statements in this release and the accompanying presentation include, but are not limited to, statements made in Mr. Thomson's and Ms. McCann's quotations, any projections or expectations of revenue growth, margin expansion, achievement of operational efficiencies and savings, effective use of technology, investments in our solutions and artificial intelligence adoption and innovation, TCV and Ex-L&S New Business TCV, the impact of new logo signings, backlog, book-to-bill⁽⁴⁾, full-year 2026 revenue growth and profitability guidance, including constant currency revenue, Ex-L&S constant currency revenue growth, L&S revenue, non-GAAP operating profit margin, free cash flow generation and the assumptions and other expectations made in connection with our full-year 2026 financial guidance, the reduction of uncertainty and volatility of cash requirements, including pension contributions, our pension liability, debt extinguishment, future economic benefits from net operating losses and statements regarding future economic conditions or performance.

Additional information and factors that could cause actual results to differ materially from Unisys' expectations are contained in Unisys' filings with the U.S. Securities and Exchange Commission (SEC), including Unisys' Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC's web site, http://www.sec.gov. Information included in this release is representative as of the date of this release only and while Unisys periodically reassesses material trends and uncertainties affecting Unisys' results of operations and financial condition in connection with its preparation of management's discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, Unisys does not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events, except as required by applicable law.

Non-GAAP Information

This release includes certain non-GAAP financial measures that exclude certain items such as pension and postretirement expense; goodwill impairment charge, foreign exchange (gains) losses, debt extinguishment, certain legal and other matters related to professional services and legal fees, including legal defense costs, associated with certain legal proceedings; environmental matters related to previously disposed businesses; and cost-reduction activities and other expenses that the company believes are not indicative of its ongoing operations, as they may be unusual or non-recurring. The inclusion of such items in financial measures can make the company's profitability and liquidity results difficult to compare to prior periods or anticipated future periods and can distort the visibility of trends associated with the company's ongoing performance. Management also believes that non-GAAP measures are useful to investors because they provide supplemental information about the company's financial performance and liquidity, as well as greater transparency into management's view and assessment of the company's ongoing operating performance.

Non-GAAP financial measures are often provided and utilized by the company's management, analysts, and investors to enhance comparability of year-over-year results. These items are uncertain, depend on various factors, and could have a material impact on the company's GAAP results for the applicable period. These measures should not be relied upon as substitutes for, or considered in isolation from, measures calculated in accordance with U.S. GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below except for financial guidance and other forward-looking information since such a reconciliation is not practicable without unreasonable efforts as the company is unable to reasonably forecast certain amounts that are necessary for such reconciliation. This information has been provided pursuant to the requirements of SEC Regulation G.

About Unisys

Unisys is a global technology solutions company that powers breakthroughs for the world's leading organizations. Our solutions – cloud, AI, digital workplace, applications and enterprise computing – help our clients challenge the status quo and unlock their full potential. To learn how we have been helping clients push what's possible for more than 150 years, visit unisys.com and follow us on LinkedIn.

RELEASE NO.: 0224/10040

Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of Unisys Corporation. Any other brand or product referenced herein is acknowledged to be a trademark or registered trademark of its respective holder.

UIS-Q

 

UNISYS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) (Millions, except per share data)
		Three Months Ended December 31,				Year Ended December 31,
		2025		2024		2025		2024
Revenue		574.5		545.4		1,950.1		2,008.4
Costs and expenses
Cost of revenue		379.9		370.4		1,400.8		1,422.5
Selling, general and administrative		109.9		118.7		391.2		424.2
Research and development		8.1		7.7		24.6		25.2
Goodwill impairment		—		—		55.0		39.1
		497.9		496.8		1,871.6		1,911.0
Operating income		76.6		48.6		78.5		97.4
Interest expense		18.8		8.2		53.4		31.9
Other (expense) income, net		(17.1)		18.9		(297.3)		(140.8)
Earnings (loss) before income taxes		40.7		59.3		(272.2)		(75.3)
Provision for income taxes		20.9		28.8		67.8		117.9
Consolidated net earnings (loss)		19.8		30.5		(340.0)		(193.2)
Net income (loss) attributable to noncontrolling interests		1.1		0.5		(0.2)		0.2
Net income (loss) attributable to Unisys Corporation		$          18.7		$          30.0		$      (339.8)		$      (193.4)
(Loss) earnings per share attributable to Unisys Corporation
Basic		$          0.26		$          0.43		$        (4.79)		$        (2.79)
Diluted		$          0.25		$          0.41		$        (4.79)		$        (2.79)

 

UNISYS CORPORATION SEGMENT RESULTS (Unaudited) (Millions)
		Total		DWS		CA&I		ECS		Other
Three Months Ended December 31, 2025
Revenue		$        574.5		$        126.4		$        190.6		$        236.8		$              20.7
Gross profit percent		33.9 %		10.5 %		20.7 %		65.9 %
Three Months Ended December 31, 2024
Revenue		$        545.4		$        128.2		$        192.7		$        203.5		$              21.0
Gross profit percent		32.1 %		15.9 %		18.6 %		63.2 %

 

		Total		DWS		CA&I		ECS		Other
Year Ended December 31, 2025
Revenue		$    1,950.1		$        508.4		$        732.8		$        628.9		$              80.0
Gross profit percent		28.2 %		14.5 %		20.2 %		55.5 %
Year Ended December 31, 2024
Revenue		$    2,008.4		$        523.5		$        764.4		$        627.5		$              93.0
Gross profit percent		29.2 %		15.7 %		19.6 %		58.0 %

 

EXCLUDING LICENSE AND SUPPORT (EX-L&S) REVENUE AND GROSS PROFIT (Unaudited) (Millions)
		Three Months Ended				Year Ended
		December 31,				December 31,
		2025		2024		2025		2024
L&S revenue		$    186.4		$    151.7		$     428.1		$    431.5
Ex-L&S revenue		388.1		393.7		1,522.0		1,576.9
Revenue		$    574.5		$    545.4		$ 1,950.1		$ 2,008.4
L&S gross profit		$    143.3		$    113.1		$     293.9		$    308.3
Ex-L&S gross profit		51.3		61.9		255.4		277.6
Gross profit		$    194.6		$    175.0		$     549.3		$    585.9
L&S gross profit percent		76.9 %		74.6 %		68.7 %		71.4 %
Ex-L&S gross profit percent		13.2 %		15.7 %		16.8 %		17.6 %
Gross profit percent		33.9 %		32.1 %		28.2 %		29.2 %

 

UNISYS CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (Millions)
	December 31, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$                  413.9		$                  376.5
Accounts receivable, net	437.7		467.2
Contract assets	10.9		16.0
Inventories	13.8		16.4
Prepaid expenses and other current assets	127.7		103.2
Total current assets	1,004.0		979.3
Properties, net	53.1		57.1
Capitalized contract costs, net	73.6		31.2
Marketable software, net	166.1		165.0
Operating lease right-of-use assets	38.4		38.4
Prepaid pension and postretirement assets	21.3		25.6
Deferred income taxes	96.9		96.6
Goodwill	193.8		247.9
Intangible assets, net	31.2		35.5
Restricted cash	7.8		14.1
Other long-term assets	160.0		181.6
Total assets	$               1,846.2		$               1,872.3
Total liabilities and deficit
Current liabilities:
Current maturities of long-term debt	$                    12.7		$                      5.0
Accounts payable	81.2		97.9
Deferred revenue	228.5		210.4
Other accrued liabilities	333.5		314.7
Total current liabilities	655.9		628.0
Long-term debt	729.0		488.2
Long-term pension and postretirement liabilities	517.7		816.4
Long-term deferred revenue	100.7		108.8
Long-term operating lease liabilities	30.6		28.9
Other long-term liabilities	80.6		71.3
Commitments and contingencies
Total Unisys Corporation stockholders' deficit	(282.6)		(283.4)
Noncontrolling interests	14.3		14.1
Total deficit	(268.3)		(269.3)
Total liabilities and deficit	$               1,846.2		$               1,872.3

 

UNISYS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Millions)
		Year Ended December 31,
		2025		2024
Cash flows from operating activities
Consolidated net loss		$       (340.0)		$       (193.2)
Adjustments to reconcile consolidated net loss to net cash (used for) provided by operating activities:
Foreign currency losses		5.8		14.5
Loss on debt extinguishment		7.0		—
Employee stock compensation		15.1		21.2
Depreciation and amortization of properties		23.5		24.3
Depreciation and amortization of capitalized contract costs		17.1		22.6
Amortization of marketable software		50.3		52.3
Amortization of intangible assets		4.3		7.2
Goodwill impairment		55.0		39.1
Other non-cash operating activities		4.6		0.2
Gain on sale of properties		(4.3)		—
Pension and postretirement contributions		(345.3)		(27.1)
Pension and postretirement expense		309.0		182.2
Deferred income taxes, net		7.7		35.6
Changes in operating assets and liabilities:
Receivables, net and contract assets		79.8		(24.5)
Inventories		3.0		(1.7)
Other assets		(24.5)		(21.5)
Accounts payable and current liabilities		(28.8)		(20.7)
Other liabilities		20.7		24.6
Net cash (used for) provided by operating activities		(140.0)		135.1
Cash flows from investing activities
Proceeds from foreign exchange forward contracts		2,342.1		3,077.1
Purchases of foreign exchange forward contracts		(2,305.1)		(3,094.4)
Investment in marketable software		(47.6)		(47.5)
Capital additions of properties and other assets		(30.0)		(32.3)
Net proceeds from sale of properties		8.9		—
Other		(0.1)		(0.3)
Net cash used for investing activities		(31.8)		(97.4)
Cash flows from financing activities
Proceeds from issuance of long-term debt		700.0		—
Payments of long-term debt		(492.1)		(15.4)
Issuance costs relating to long-term debt		(14.1)		—
Cash paid for debt extinguishment		(4.2)		—
Other		(3.6)		(2.7)
Net cash provided by (used for) financing activities		186.0		(18.1)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		16.9		(25.7)
Increase (decrease)  in cash, cash equivalents and restricted cash		31.1		(6.1)
Cash, cash equivalents and restricted cash, beginning of period		390.6		396.7
Cash, cash equivalents and restricted cash, end of period		$         421.7		$         390.6

 

UNISYS CORPORATION RECONCILIATIONS OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (Unaudited) (Millions, except per share data)
			Three Months Ended				Year Ended
			December 31,				December 31,
			2025		2024		2025		2024
Net income (loss) attributable to Unisys Corporation			$          18.7		$          30.0		$      (339.8)		$      (193.4)
Pension and postretirement expense	pretax		22.2		11.1		309.0		182.2
	tax		0.6		0.2		2.5		0.6
	net of tax		21.6		10.9		306.5		181.6
Goodwill impairment	pretax		—		—		55.0		39.1
	tax		—		—		—		—
	net of tax		—		—		55.0		39.1
Foreign exchange losses, net	pretax		4.4		2.4		8.5		11.9
	tax		—		—		—		—
	net of tax		4.4		2.4		8.5		11.9
Loss on debt extinguishment	pretax		—		—		7.0		—
	tax		—		—		—		—
	net of tax		—		—		7.0		—
Certain legal matters, net	pretax		(2.8)		(39.2)		(1.8)		(40.1)
	tax		—		—		—		(2.8)
	net of tax		(2.8)		(39.2)		(1.8)		(37.3)
Environmental matters	pretax		1.6		7.4		3.1		8.8
	tax		—		—		—		—
	net of tax		1.6		7.4		3.1		8.8
Cost reduction and other expenses	pretax		21.8		15.2		32.0		33.7
	tax		1.9		0.1		2.2		0.4
	net of tax		19.9		15.1		29.8		33.3
Non-GAAP net income attributable to Unisys Corporation			$          63.4		$          26.6		$          68.3		$          44.0
Weighted average shares (thousands)			71,308		69,458		70,994		69,199
Plus incremental shares from assumed conversion:
	Employee stock plans		2,330		3,480		—		—
Adjusted weighted average shares			73,638		72,938		70,994		69,199
Weighted average shares (thousands)			71,308		69,458		70,994		69,199
Plus incremental shares from assumed vesting:
	Employee stock plans		2,330		3,480		2,616		2,340
Non-GAAP adjusted weighted average shares			73,638		72,938		73,610		71,539
Diluted earnings (loss) per share
GAAP basis
Net income (loss) attributable to Unisys Corporation			$          18.7		$          30.0		$      (339.8)		$      (193.4)
Divided by weighted average shares			73,638		72,938		70,994		69,199
Diluted earnings (loss) per share			$          0.25		$          0.41		$        (4.79)		$        (2.79)
Non-GAAP basis
Non-GAAP net income attributable to Unisys Corporation for diluted earnings per share			$          63.4		$          26.6		$          68.3		$          44.0
Divided by Non-GAAP adjusted weighted average shares			73,638		72,938		73,610		71,539
Non-GAAP diluted earnings per share			$          0.86		$          0.36		$          0.93		$          0.62

 

UNISYS CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP  (Unaudited) (Millions)   FREE CASH FLOW
			Three Months Ended				Year Ended
			December 31,				December 31,
			2025		2024		2025		2024
Cash provided by (used for) operations			$        104.9		$          76.6		$      (140.0)		$        135.1
Additions to marketable software			(11.5)		(10.8)		(47.6)		(47.5)
Additions to properties and other assets			(7.6)		(10.1)		(30.0)		(32.3)
Free cash flow			85.8		55.7		(217.6)		55.3
Pension and postretirement funding			27.1		6.1		345.3		27.1
Pre-pension and postretirement free cash flow			112.9		61.8		127.7		82.4
Debt extinguishment payments			—		—		4.2		—
Certain legal receipts			(3.1)		(6.8)		(26.3)		(4.8)
Environmental matters payments			2.3		8.7		7.4		17.2
Cost reduction and other payments			3.8		3.3		12.1		9.8
Adjusted free cash flow			$        115.9		$          67.0		$        125.1		$        104.6

 

UNISYS CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP  (Unaudited) (Millions) EBITDA
			Three Months Ended				Year Ended
			December 31,				December 31,
			2025		2024		2025		2024
Net income (loss) attributable to Unisys Corporation			$          18.7		$          30.0		$      (339.8)		$      (193.4)
Net income (loss) attributable to noncontrolling interests			1.1		0.5		(0.2)		0.2
Interest expense, net of interest income of $4.7, $5.8, $20.7, $23.2 respectively(1)			14.1		2.4		32.7		8.7
Provision for income taxes			20.9		28.8		67.8		117.9
Depreciation			11.6		10.9		40.6		46.9
Amortization			13.1		17.7		54.6		59.5
EBITDA			$          79.5		$          90.3		$      (144.3)		$          39.8
Pension and postretirement expense			$          22.2		$          11.1		$        309.0		$        182.2
Goodwill impairment			—		—		55.0		39.1
Foreign exchange losses, net (1)(2)			4.4		2.4		8.5		11.9
Loss on debt extinguishment (1)			—		—		7.0		—
Certain legal matters, net (3)			(2.8)		(39.2)		(1.8)		(40.1)
Environmental matters (1)			1.6		7.4		3.1		8.8
Cost reduction and other expenses (4)			19.8		9.7		23.6		22.1
Non-cash share based expense			2.9		5.0		15.1		20.9
Other expense, net adjustment (5)			1.4		4.7		3.6		7.4
Adjusted EBITDA			$        129.0		$          91.4		$        278.8		$        292.1

(1) Included in other (expense), net on the consolidated statements of income (loss).
(2) Foreign exchange losses, net include (gains) losses from remeasuring cash, receivables, payables and intercompany balances denominated in foreign currencies, (gains) losses on foreign exchange forward contracts and (gains) losses related to the substantial completion of liquidation of certain foreign subsidiaries. In the third quarter of 2025, the company ceased its use of foreign currency forward contracts.
(3) Included in selling, general and administrative expenses and other (expense), net within the consolidated statements of income (loss). For the three months ended and the year ended December 31, 2024, certain legal matters, net included a gain of $40.0 million related to a favorable settlement of a litigation matter. Additionally, for year ended December 31, 2024, certain legal matters, net included a net gain of $14.9 million related to a favorable judgment received in a Brazilian services tax matter.
(4) Reduced for depreciation and amortization included above.
(5) Other expense, net as reported on the consolidated statements of income (loss) less pension and postretirement expense, foreign exchange (gains) losses, net, loss on debt extinguishment, interest income and items included in certain legal and environmental matters and cost reduction and other expenses.

 

			Three Months Ended				Year Ended
			December 31,				December 31,
			2025		2024		2025		2024
Revenue			$   574.5		$   545.4		$  1,950.1		$  2,008.4
Net income (loss) attributable to Unisys Corporation as a percentage of revenue			3.3 %		5.5 %		(17.4) %		(9.6) %
Non-GAAP net income attributable to Unisys Corporation as a percentage of revenue			11.0 %		4.9 %		3.5 %		2.2 %
Adjusted EBITDA as a percentage of revenue			22.5 %		16.8 %		14.3 %		14.5 %

 

UNISYS CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP  (Unaudited) (Millions)   OPERATING PROFIT
		Three Months Ended				Year Ended
		December 31,				December 31,
		2025		2024		2025		2024
Operating profit		$     76.6		$     48.6		$     78.5		$     97.4
Goodwill impairment		—		—		55.0		39.1
Certain legal matters, net (1)		0.3		0.8		1.6		9.0
Cost reduction and other expenses (2)		26.1		13.6		40.2		29.5
Pension and postretirement expense (1)		0.4		0.3		1.6		1.4
Non-GAAP operating profit		$   103.4		$     63.3		$   176.9		$   176.4
Revenue		$   574.5		$   545.4		$  1,950.1		$  2,008.4
Operating profit percent		13.3 %		8.9 %		4.0 %		4.8 %
Non-GAAP operating profit percent		18.0 %		11.6 %		9.1 %		8.8 %

(1) Included in selling, general and administrative expenses within the consolidated statements of income (loss).

(2) Included in cost of revenue, selling, general and administrative and research and development on the consolidated statements of income (loss).

 

 

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SOURCE Unisys Corporation

FAQ

What were Unisys (UIS) fourth-quarter 2025 revenues and growth rates?

Unisys reported $574.5 million in 4Q25 revenue, a 5.3% increase year‑over‑year. According to Unisys, growth was 2.7% in constant currency, driven primarily by timing of software license renewals and stronger L&S performance.

How did Unisys (UIS) profitability change in 4Q25 and full‑year 2025?

4Q25 non‑GAAP operating margin rose to 18.0%, up 640 basis points year‑over‑year. According to Unisys, margin gains reflect license timing and cost savings, while full‑year GAAP operating margin was lower due to one‑time charges.

What is the impact of Unisys's pension actions on FY25 cash flow and results?

Unisys recorded a $227.7M pension settlement loss and made a $250M discretionary pension contribution in FY25. According to Unisys, these moves improved pension funding but materially reduced reported operating cash flow for the year.

What guidance did Unisys (UIS) give for 2026 revenue growth and margins?

Unisys forecasted 2026 constant‑currency revenue growth of (6.5)% to (4.5)% and non‑GAAP operating margin of 9.0%–11.0%. According to Unisys, guidance assumes L&S revenue around $415 million and continued Ex‑L&S pressure.

How strong is Unisys's liquidity position after 2025 results (UIS)?

Unisys ended FY25 with $413.9M in cash and equivalents and an undrawn credit facility. According to Unisys, liquidity benefited from license collections and financing used to fund the pension contribution.

What do Unisys (UIS) backlog and TCV trends indicate for near‑term revenue?

Backlog rose to $3.16B in 4Q25 and total company TCV increased 13% for FY25 to $2.21B. According to Unisys, higher Ex‑L&S renewals drove backlog growth, though new business TCV declined amid longer sales cycles.